The FDIC issued 87 enforcement actions against problem banks and individuals in March, up from 60 in February. The administrative enforcement actions processed included 22 consent orders, 15 civil money penalties and 6 prompt corrective actions.
Regulatory enforcement actions are issued to address serious deficiencies or when regulators have doubts about an institution’s ability to implement required corrective actions. Institutions considered critically undercapitalized are generally required to be closed within 90 days.
If a financial institution accepts a Cease and Desist Order, it is referred to as a “consent order”. When Regulators issue a Cease and Desist Order they have “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations”.
After “consenting” to a regulatory order, a bank will execute a “Stipulation to the Issuance of a Consent Order”. Consent agreements allow a bank to agree with regulatory stipulations “without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulations relating to weaknesses in asset quality, capital adequacy, earnings, management effectiveness, liquidity, and sensitivity to market risk”.
Much more serious than a Consent Order is a prompt corrective action (PCA) directive which is a “formal action that requires an institution to take one or more specified actions to return to required minimum capital standards”. Many institution are unable to comply with the terms of a PCA and a large percentage wind up on the FDIC Failed Bank List.
The latest Quarterly Bank Profile revealed that the number of banks on the FDIC’s confidential Problem Bank List had increased from 860 to 884. Almost 12% of all FDIC insured institutions are on the FDIC Problem Bank List.
Many of the banks receiving consent orders or prompt corrective action directives have serious deficiencies and are likely to wind up on the failed bank list.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Consent Orders)
Gateway Business Bank, Cerritos, CA; FDIC-11-054b; FDIC-10-888k; in the amount of $25,000.00; Issued 3/7/11 – PDF
Ojai Community Bank; Ojai, CA; FDIC-11-101b; Issued 3/31/11 – PDF
Plumas Bank, Quincy, CA; FDIC-11-035b; Issued 3/18/11 – PDF
The Pueblo Bank and Trust Company, Pueblo, CO; FDIC-11-025b; Issued 3/25/11 – PDF
Artisans’ Bank, Wilmington, DE; FDIC-11-047b; Issued 3/3/11 – PDF
Bank of Naples, Naples, FL; FDIC-11-036b; Issued 3/8/11 – PDF
The Bank of Commerce, Sarasota, FL; FDIC-10-959b; Issued 3/30/11 – PDF
Bank of Idaho, Idaho Falls, ID; FDIC-11-003b; Issued 3/18/11 – PDF
Mercantile Bank, Quincy, IL; FDIC-11-012b; Issued 3/31/11 – PDF
Legacy Bank, Altoona, IA; FDIC-11-026b; Issued 3/17/11 – PDF
Heartland Bank, Leawood, KS; FDIC-10-914b; Issued 3/14/11 – PDF
United Kentucky Bank of Pendleton County, Inc., Falmouth, KY; FDIC-11-104b; Issued 3/16/11 – PDF
Alliance Banking Company, Winchester, KY; FDIC-10-847b; Issued 3/18/11 – PDF
Northpointe Bank, Grand Rapids, MI; FDIC-10-885b; Issued 3/30/11 – PDF
BANKWEST, Rockford, MN; FDIC-10-952b; Issued 3/17/11 – PDF
World’s Foremost Bank, Sidney, NE; FDIC-10-775b; FDIC-10-777k; in the amount of $250,000.00; Issued 3/3/11 – PDF
Greystone Bank, Raleigh, NC; FDIC-10-844b; Issued 3/1/11 – PDF
Greer State Bank, Greer, SC; FDIC-10-904b; Issued 3/1/11 – PDF
Arthur State Bank, Union, SC; FDIC-10-948b; Issued 3/30/11 – PDF
Synergy Bank, S.S.B., McKinney, TX; FDIC-10-235b; Issued 3/18/11 – PDF
The Business Bank, Appleton, WI; FDIC-10-945b; Issued 3/4/11 – PDF
Bancroft State Bank, Bancroft, WI; FDIC-10-936b; Issued 3/1/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(e), 12 U.S.C. § 1818(e)
(Removal and Prohibition Orders)
Troy Bank & Trust Company, Troy, AL; FDIC-09-318e; against Peter L. Cash; Issued 3/3/11 – PDF
First Guaranty Bank, Hammond, LA; FDIC-09-501e; against Jamy L. Sibley (formerly Jamy L. Kiger); Issued 3/7/11 – PDF
The Park Avenue Bank, New York, NY; FDIC-10-781e; against Charles J. Antonucci; Issued 3/17/11 – PDF
Northwest Savings Bank, Warren, PA; FDIC-10-770e; against Lisa A. Alcorn; Issued 3/3/11 – PDF
First Reliance Bank, Florence, SC; FDIC-10-320e; against Antoinete B. Hill; Issued 3/3/11 – PDF
FirstBank Southwest, Amarillo, TX; FDIC-10-528e; against Megan Hahn; Issued 3/3/11 – PDF
Citizens State Bank of Luling, Luling, TX; FDIC-10-536e; against Edward S. Casseb; Issued 3/17/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 5(e), 12 U.S.C. § 1815(e)
(Cross Guarantee Liability)
Community Bank of Rowan, Salisbury, NC; FDIC-11-069kk; Issued 3/29/11 – PDF
Bank of Fort Bend, Sugar Land, TX; FDIC-10-708kk; Issued 3/29/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(i), 12 U.S.C. § 1818(i)
(Civil Money Penalties)
ServisFirst Bank, Birmingham, AL; FDIC-10-900k; in the amount of $7,500.00; Issued 3/1/11 – PDF
Gateway Business Bank, Cerritos, CA; FDIC-11-054b; FDIC-10-888k; in the amount of $25,000.00; Issued 3/7/11 – PDF
Integrity Bank & Trust, Monument, CO; FDIC-10-865k; in the amount of $3,500.00; Issued 3/28/11 – PDF
Regent Bank, Davie, FL; FDIC-11-049k; in the amount of $6,000.00; Issued 3/24/11 – PDF
Pulaski Savings Bank, Chicago, IL; FDIC-10-890k; in the amount of $1,500.00; Issued 3/28/11 – PDF
Central State Bank, Clayton, IL; FDIC-10-768k; in the amount of $1,155.00; Issued 3/8/11 – PDF
First Michigan Bank, Troy, MI; FDIC-10-769k; in the amount of $1,200.00; Issued 3/4/11 – PDF
World’s Foremost Bank, Sidney, NE; FDIC-10-775b; FDIC-10-777b; in the amount of $250,000.00; Issued 3/3/11 – PDF
AmBank, Silver City, NM; FDIC-10-569k; in the amount of $15,000.00; Issued 3/17/11 – PDF
The Farmers and Merchants Bank, Caldwell, OH; FDIC-10-789k; in the amount of $6,800.00; Issued 3/25/11 – PDF
Coatesville Savings Bank, Coatesville, PA; FDIC-11-071k; in the amount of $2,750.00; Issued 3/25/11 – PDF
Harleysville Savings Bank, Harleysville, PA; FDIC-10-878k; in the amount of $8,500.00; Issued 3/18/11 – PDF
Northstar Bank of Texas, Denton, TX; FDIC-10-928k; in the amount of $9,500.00; Issued 3/31/11 – PDF
Citizens State Bank of Luling, Luling, TX; FDIC-09-645k; in the amount of $5,000.00 against Edward S. Casseb; Issued 3/17/11 – PDF
Mitchell Bank, Milwaukee, WI; FDIC-09-675k; in the amount of $3,060.00; Issued 3/25/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Actions)
Bank of Choice, Greeley, CO; FDIC-11-038PCAS; Issued 3/14/11 – PDF
Signature Bank, Windsor, CO; FDIC-11-122PCAS; Issued 3/31/11 – PDF
Bank of Shorewood, Shorewood, IL; FDIC-11-115PCAS; Issued 3/25/11 – PDF
Oxford Bank, Oxford, MI; FDIC-10-889PCAS; Issued 3/4/11 – PDF
Heritage Banking Group, Carthage, MS; FDIC-10-907PCAS; Issued 3/2/11 – PDF
Summit Bank, Burlington, WA; FDIC-11-136PCAS; Issued 3/2/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(p), 12 U.S.C. § 1818(p)
Banco Buenaventura, Oxnard, CA; FDIC-10-593p; Issued 3/29/11 – PDF
American Home Bank, Chicago, IL; FDIC-10-874p; Issued 3/16/11 – PDF
TERMINATIONS
Orders Terminating Consent Orders and Cease and Desist Orders
Professional Business Bank, Pasadena, CA; Cert. No. 57148; Merged Into and now known as: Professional Business Bank, Pasadena, CA; Cert. No. 58674; FDIC-09-371b; Issued 3/28/11 – PDF
Sunshine State Community Bank, Port Orange, FL; FDIC-09-324b; Issued 3/4/11 – PDF
Enterprise Banking Company, McDonough, GA; FDIC-09-462b; Issued 3/30/11 – PDF
Citizens Bank of Effingham, Springfield, GA; FDIC-10-102b; Issued 3/3/11 – PDF
Town Community Bank and Trust, Antioch, IL; FDIC-09-689b; Issued 3/31/11 – PDF
Benchmark Bank, Aurora, IL; FDIC-09-404b; Issued 3/31/11 – PDF
Broadway Bank, Chicago, IL; FDIC-09-573b; Issued 3/31/11 – PDF
Citizens Bank and Trust Company of Chicago, Chicago, IL; FDIC-09-248b; Issued 3/31/11 – PDF
Lincoln Park Savings Bank, Chicago, IL; FDIC-09-250b; Issued 3/31/11 – PDF
New Century Bank, Chicago, IL; FDIC-09-348b; Issued 3/31/11 – PDF
Ravenswood Bank, Chicago, IL; FDIC-09-155b; Issued 3/31/11 – PDF
Shorebank, Chicago, IL; FDIC-09-074b; Issued 3/31/11 – PDF
Heritage Community Bank, Glenwood, IL; FDIC-08-131b; Issued 3/31/11 – PDF
Community Bank of Lemont, Lemont, IL; FDIC-08-372b; Issued 3/31/11 – PDF
Bank of Lincolnwood, Lincolnwood, IL; FDIC-09-135b; Issued 3/31/11 – PDF
Wheatland Bank, Naperville, IL; FDIC-09-308b; Issued 3/31/11 – PDF
InBank, Oak Forest, IL; FDIC-09-275b; Issued 3/31/11 – PDF
Palos Bank and Trust Company, Palos Heights, IL; FDIC-09-279b; Issued 3/31/11 – PDF
Peotone Bank and trust Company, Peotone, IL; FDIC-09-184b; Issued 3/31/11 – PDF
Valley Community Bank, St. Charles, IL; FDIC-09-214b; Issued 3/31/11 – PDF
First Dupage Bank, Westmont, IL; FDIC-08-387b; Issued 3/31/11 – PDF
Bank of Franklin, Meadville, MS; FDIC-09-562b; Issued 3/31/11 – PDF
High Desert State Bank, Albuquerque, NM; FDIC-09-127b; Issued 3/14/11 – PDF
The First State Bank, Camargo, OK; FDIC-10-908b; Issued 3/30/11 – PDF
American State Bank, Tulsa, OK; FDIC-09-755b; Issued 3/30/11 – PDF
First Bank & Trust, Brookings, SD; FDIC-07-228b; Issued 3/14/11 – PDF
AmericanWest Bank, Spokane, WA; FDIC-09-144b; Issued 3/24/11 – PDF
Orders Terminating the Supervisory Prompt Corrective Action Directive
First State Bank, Sarasota, FL; FDIC-09-333PCAS; Issued 3/30/11 – PDF
The First State Bank, Camargo, OK; FDIC-10-915PCAS; Issued 3/30/11 – PDF
Prosper Bank, Prosper, TX; FDIC-10-207PCAS; Issued 3/14/11 – PDF
NOTICE ISSUED
(Note: A Notice is a proposal enforcement action and is not a final decision or order by the FDIC)
Notice of Charges For an Order to Cease and Desist and Notice of Hearing
Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; Issued 2/9/11 – PDF
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